I'm proud that Schwab has decided to stand up to the NY AG on this. Schwab didn't market or underwrite these products. Instead, they just went out and purchased/sold them for clients when asked. The companies who caused the Auction Rate mess are now out of business and cannot be punished. Instead the NY AG decided to go after companies, such as Schwab, AMTD, that played a minor role in the market.
People in glass houses! The persons that started the sub-prime and AIG failure! NOT! Tax payers money make AIG a success! 'Andrew Cuomo, the youngest Housing and Urban Development secretary in history, made a series of decisions between 1997 and 2001 that gave birth to the country's current crisis. He took actions that in combination with many other factors helped plunge Fannie and Freddie into the subprime markets without putting in place the means to monitor their increasingly risky investments. He turned the Federal Housing Administration mortgage program into a sweetheart lender with sky-high loan ceilings and no money down, and he legalized what a federal judge has branded "kickbacks" to brokers that have fueled the sale of overpriced and unsupportable loans
The Commodity Futures Modernization Act of 2000 ("CFMA"), signed by President Clinton on December 21, 2000, therefore created a "safe harbor" by (1) preempting state and local gaming and bucket shop laws except for general antifraud provisions, and (2) exempting certain derivative transaction on commodities and swap agreements, including credit default swaps, from CFTC regulation.’ Give your tax money away why? Maybe the politicans and their families receive the usual 20-30% kick back. That money is gone in one week. Invert the pyramid and put the weight of the little guys on top of the high priced do nothing executives! Hedge fund paid Obama adviser Summers $5.2 million By Roberta Rampton Roberta Rampton Fri Apr 3, 11:44 pm ET WASHINGTON (Reuters) – Lawrence Summers, a top economic adviser to U.S. President Barack Obama, was paid about $5.2 million by hedge fund D.E. Shaw in the past year, financial disclosure forms released by the White House showed on Friday. Summers, a former U.S. Treasury secretary and Harvard University president, also was paid $2.7 million in speaking fees by a range of organizations and companies, including several troubled Wall Street financial firms, they showed. The disclosure documents on Summers and other White House officials advising Obama on the global financial crisis covered 2008 and the first few months of this year. Summers became an official adviser on January 20 when Obama took office. Summers, who was a part-time managing director of D.E. Shaw after stepping down as Harvard president, had speaking fees of $67,500 from JP Morgan, $45,000 from Citigroup, $135,000 from Goldman Sachs and $67,500 from Lehman Brothers, which went bankrupt in the mortgage crisis last year. He also had significant income from Harvard University and from investments, the forms showed. As chairman of the Council of Economic Advisors, Summers is a leading voice in Obama's policies to reverse the recession in the United States, rebuild the financial industry and help to end the global crisis. The disclosure documents showed many of the senior advisers to the president earned large salaries from their companies, served in lucrative positions on corporate boards and had large holdings of stocks, bonds and mutual funds. National Security Adviser James Jones reported collecting more than $1 million for serving as a director for Boeing, Chevron and other companies. He had a salary and bonuses of $900,000 from the U.S. Chamber of Commerce. Obama senior adviser David Axelrod reported $896,776 in salary from his consulting firm AKP&D Message and Media as well as $500,000 in partnership income. He had another $151,914 in partnership income from his other campaign management firm, ASK Public Strategies. Axelrod reported he had entered an agreement to sell the firms for $3 million over five years. Valerie Jarrett, , reported $346,687 in directors' fees, including from the consulting firm Navigant, a real estate investment trust and the Chicago Stock Exchange. Jarrett had $302,000 in salary from a company that develops and manages apartment buildings, plus $550,000